Directors' Report: Group overview
How we create value
Tullow creates value in two main ways. We grow our resource base through successful exploration and strategic acquisitions, which complement our business in our areas of focus. We then commercialise those resources by efficiently developing fields or by farming down and re-investing for strategic advantage.
Turning resources into reserves and then into production revenue is one of our core strengths. We have a successful track record in managing mature production operations and the fast-track development of major projects in Ghana and Uganda is shifting our operating capability to a different level.
Total reserves and resources
Our aim is to continuously grow our resource base to generate value-adding development or dilution opportunities. We achieved 437% organic replacement in 2009 and 1,232% in 2008.
Working interest production
Production is key to revenue growth and free cash flow generation. Our medium-term objective is to build a business with a production profile that is capable of funding a major annual exploration programme.